Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
5 e# _2 Y$ {5 dexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
5 T0 e2 p6 |) R1 X1 X% i$ `these oil producer will go bankrupt or out of the business even if
( Y2 \; D; {+ V& Zcrude prices improves. This implies also to good names such as Shell,
# Z5 Z) V6 X4 v! XEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
; J7 W' p$ u& _& sA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.

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There are several reasons the price of oil is decreasing in the face
1 P& }3 ?& s( z8 i6 }3 d. Cof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
: y1 \, ]* y: C" b4 D# _" q% uArabia.
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! O8 l) q0 S9 v2. New natural gas has been found in Pennsylvania and West Virginia.
9 h* t& n4 f4 K/ j) w" WThis is the largest find in North America.


# Q$ k0 C: P) V: i3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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2 w! V/ w/ q& O  @) v6 [7 ^+ [4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
  r; d# }& ~/ `  q- p/ opotential per acre in some cases is astounding. Many countries are
; c, e1 s; f5 ^6 U, Lracing to produce bio fuels.

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. ~& U( \3 `, z+ d5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
) g5 W  L/ n+ _6 fproducing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
; N$ n2 R% M9 hconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
9 P( e0 \( u! d  G( ?/ I+ |) P6 wwill replace oil.


7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
4 X! u& r9 k! H4 x* hwith new more fuel efficient equipment. Airlines and railway companies
7 r: _' {) U% Uare experiencing 20% to 25% better fuel econony with the new
: a4 Q3 r( X. aequipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
9 Y  G  Y) c1 T4 @fuel is cleaner and performs better than jet fuel.
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) ~/ z. u4 J1 M, i8. Cities and counties throughout the US are selling the rights to
! n; H6 ?2 V. h$ m' Q$ Hcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
4 J8 o: T8 Y0 |. R# zoil.


3 U# C1 }; X2 ?+ ?! \9. Coal is being transformed into a clean burning liquid fuel. The CO2
( [. d+ }1 S0 X6 r# i5 Dproduced as a byproduct is sold to oil companies for injection into
oil wells.
1 l) ]6 r2 K- O. n

10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
3 U) Y& t& ]2 o2 S) K4 tprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.

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With the above scenario, I still believe that there are under
4 h% F( C: a, D% n( K. D$ v, b2 mperformed OIL companies and probably they are yet to get the justified
5 x2 x0 L2 R4 d8 Q- g- bvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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" ?- Y9 b8 q; Q# i- Y/ Y5 bThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only